The objective of this report is to present the work that has been done in year 2 of the PRACE-1IP project work package 6 on the Operations of the PRACE distributed infrastructure. To support a good and complete overview, description and classification of PRACE Operational services, we have developed a PRACE Service Catalogue last year. In year 2 Tier-1 services have been added to this Service Catalogue to complete the picture of PRACE service provision. Further, the PRACE Service Catalogue has been fine-grained by naming and classifying for every service also the actual product that is used to provide the service. Every product has been classified as well. In this manner, a complete overview of all PRACE services, products and their classification has been made. In the process towards PRACE Quality of Service and quality control we have started defining PRACE Operational Key Performance Indicators. A first set of KPIs have been developed and proposed by a working group and these are currently discussed among the operational partners. In parallel, the measurement of the KPIs is being implemented. Based on the procedures for incident and change management that have been setup in year 1, we have operated a complete set of PRACE common services in year 2. Services that have been deployed include network services (e.g., Iperf), compute services (e.g., UNICORE), data services (e.g., GridFTP), AAA services (e.g., central LDAP, PRACE Accounting services, GSI-SSH), monitoring services (e.g., Inca), and user services (e.g., PRACE Common Production Environment, PRACE Help Desk). A number of Tier-0 systems have been installed and integrated in PRACE Operations in year two: an upgraded system of CURIE from GENCI@CEA; the new system HERMIT from GCS@HLRS; and the first nodes of SuperMUC from GCS@LRZ Preparations have been made for the integration of the FERMI system at CINECA. Collaborations on the operational level have been continued with EGI, EMI, IGE and MAPPER. On the technical evolution of the common services of the infrastructure, we have consolidated and extended existing services evaluating new technologies on the basis of requirements from users that have been collected. Moreover, we have improved the level of offered services through the definition of a service certification process. We have further extended the accounting systems to provide more information about allocated resource budgets, and we have laid a foundation for the development of a data management strategy.